Fund Objective

The Fund's investment objective is to provide long term capital growth by investing in continental Europe.

View on Past Performance

European ex UK equities fell 13% in sterling terms (11% in Euro) with concerns about the banking industry and the economic outlook. All sectors were lower with basic materials, industrials and technology falling by close to 20%. Financials performed in line with the market despite considerable stress in the banking sector.The Fund fell by more than the market on underperformance of investments exposed to the oil and commodity industries. The exposure in oil & gas is in smaller companies which have fallen by more than the large integrated companies. In Financials, DnB NOR was weak with concerns about lending for local housing and the global shipping sector.

Future Expectations

The corporate environment remains challenging across most sectors as economic concerns increase. The current lack of confidence in banks is a significant issue although government support should stabilise sentiment. Markets are likely to remain very volatile while the level of economic and corporate earnings uncertainty is so high.

Fund Details